SHMP recently announced a sale of 25,000 lbs of shrimp at $10.50 a lbs. This sale marks the first large agreement for a company that seems to have figured out how to grow clean shrimp in lab like conditions. Given how dirty Gulf shrimp and farmed shrimp are as they store petro chemicals and are treated with antibiotics, SHMP may be ahead of a very large curve. The investment thesis is with SHMP's intellectual property and ability to refine their production facilities.
SHMP may have developed the first-ever commercially viable system for growing shrimp clean, gourmet-grade shrimp in enclosed, salt-water systems. It utilizes a land-based recirculating aquaculture system (RAS) with negative oxygen reduction potential (ORP) and anti-oxidation treatments (Gas and Plasma). Given the lack of environmental contaminants and pathogens, SHMP looks like the first company to crack the code to raising fresh, clean and sustainable shrimp. Analysts should not underestimate how difficult it is to produce 25,000 lbs of clean shrimp. SHMP is set to produce upwards of 13,000 lbs of shrimp a week as grow facilities in TX, IA and FL begin to reach capacity. While this $7MM in revenue will be needed to fund future growth, potential margins could be massive with licensing deals expand to other growers. SHMP's patent protected technology puts it in a potential strong positon to drive revenue at very little cost.
Fire sale! The company had a fire at its La Coste, TX facility clobbering the stock as low as $.03/share in 2019. It has since rebuilt and is expanding its La Coste facility, building a grow lab in Iowa as well as Florida.
SHMP announced on Dec. 30, 2021 a 2nd phase trial for fresh water salmon using it RAS technology at the Marineholmen RASLab, in Bergen, Norway. “In this study we will investigate the effects of hydrogas on fish welfare and performance in freshwater salmon production. The study will include smoltification and transfer into saltwater. We are also including some additional analyses on the microbiome to understand if the negative ORP environment influences the consortium of bacteria in RAS,” said Christine Huynh, DVM aquatic species consultant for NaturalShrimp.
“Our initial validation study results demonstrated that fish grown using Hydrogas technology had significantly improved welfare scores, fewer inflammatory gill lesions and reduced early maturation," said Gerald Easterling, CEO of NaturalShrimp. “With these promising early results, we are now focused on proving that Hydrogas and our EC technology together can reduce mortality and increase growth rates for our existing shrimp production. These platform technologies could be significant breakthroughs for NaturalShrimp because they will enable us to obtain a separate revenue stream through the licensing of these technologies to aquaculture producers of salmon, barramundi, and other freshwater fish. We look forward to sharing results later in the coming year as we continue to scale production of our land-based gourmet-grade shrimp,” said Huynh.
We will keep a close eye on any upcoming capital raises and will take any licensing deals as very bullish.
Recommendation Accumulate Stock Long-term Investment Horizon Disclosure - Staff at CleanFoodTech own SHMP in their private accounts
SHMP Looking to Expand Into Las Vegas more
The Bear Case
Well over $1 Billion by 2028
